Abstract
Deposit taking Savings and Credit Co-operatives (SACCO) are solution to social dilemmas like abject poverty, living standards and unemployment. Nevertheless, 14 percent do not maintain sound cash management practices despite SACCOs oversight authority in Kenya offering guidelines and supervision to the enterprises that would assist in maintaining their financial sustainability. This necessitated for the evaluation of the moderating effect of SACCO size on cash management practice and financial sustainability. A descriptive cross-sectional survey design with a positivism philosophical paradigm was adopted. Emailed questionnaire and data collection sheet were used in data collection which registered a 95 percent response rate. A binary logistic regression results established that with presence of a moderator for the predictor sub-variables, the strength of the relationship between variables registered an insignificant change but with introduction of interaction term, the strength of relationship between variables changed. The study concluded that SACCO size portrayed a statistically significant moderating effect on predictor sub-variables and response variable. The study thus recommends that the management need to consider increasing their SACCO sizes through merging, acquiring the non-performing SACCOs or even conducting intensive marketing since large size SACCO have low chances of being financially unsustainable
Highlights
Cash management practice entails managing the cash inflows and outflows in an effort to maintain an optimal cash balance in the organisation at a particular time
Cash management practice descriptive results Cash management practice was assessed through cash planning, cash control and liquidity risk management parameters
The descriptive results are shown in table 1, revealed that the parameter that had the highest score was on the DT-Savings and Credit Co-operatives (SACCO) frequency of recoding cash inflows, which had a mean score of 4.88
Summary
Cash management practice entails managing the cash inflows and outflows in an effort to maintain an optimal cash balance in the organisation at a particular time. Effect of Cash Management Practices on Finanncial Performance of Small Medium Enterprises in Rwanda: Case Study of SMEs in Kicukiro District. International Journal of Management and Commerce Innovations, 6(1), 940-949. The Impact of Cash Flow Management on the Profitability and Sustainability of Small to Medium Sized Enterprises. Effect of Cash Management Practices on the Growth of MatatuSaccos in Kimilili Sub-County, Bungoma County, Kenya. The International Journal Of Business & Management, 3(1), 77-89. An investigation into the cash balance management challenges in saving and credit cooperative societies in Nakuru County, Kenya. Journal of Research in International Business and Management, 1(5), 130-135. Cash Flow Risk Management Practices on Sustainable Financial Performance in Sri Lanka. Retrieved from http://www.ijac.org.uk Yang, K., & Miller, G.
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